Hamzeh Walid Shamaileh
Hui Qian
Zhuoyi Wang
&
Zi Zhi
(In alphabetical order)
Cardiff business organisation School: Domestic & International Banking Presentation Day
May.2012
wherefore do we need a separate theory for banking?
* These theories of banking attain a very special significance in the political economy of banking
* They position banks on the basis of market conditions such as number of banks in the market, occupy rates, information availability, financial self-direction to the institutions, transaction costs, and nature of their banking ope rations
* providing knowledge into bank behavior
?net interest margin ?credit crunch ? credit rationin?securitization
NET involution MARGIN
* Definition
* gain interest margin usually is the measure of how flourishing is a bank investment decision compared to its debt situation
* a negative value shows that banks had had a bad investment decisions demo that interest expenses were much larger that investment returns, while a irrefutable value shows that banks had an optimal investment decisions gaining it profits and positive returns for that period
CALCULATIONS
* Net interest margin (NIM)
* Total touch Income - Total Interest Expense/average earning assets
* banks has deposits of 100$ and pays 10$ interest on them and gain 20$ of interest or return of investment on them so 20-10/100=.10% NIM
richness OF NIM
* NIM is usually one of the main aspects in evaluating the bank .
* vigilance system, evaluating what is a good management and a bad one
* positiveness of the bank.
* optimal investment decisions by the bank
* liquidity position to go over an efficient liquidity management and lowering liquidity ratio thus increasing NIM.
DETERMINISTS OF NET INTEREST MARGIN (internatl factors)
* Net interest spreads NIS which is the average difference between...If you want to get a full essay, order it on our website: Orderessay
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